Re: Internet Taxes
Legally all winnings must be declared as income. All income of an American citizen is taxable regarless of where in the world it was generated. You go to Canada and win $2 on a horserace, its income and taxable.
Likewise If your making a profit, Losses are deductable. You are supposed to have documentation for all win and losses. A spreadsheet or Diary can be used for this purpose.
Actual practice may vary substantially.
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